LEXINGTON, Ky., Sept. 27 /PRNewswire-FirstCall/ -- Triple Crown Media,
Inc. (Nasdaq: TCMI) announces that for the fourth quarter ended June 30,
2007, total revenues were $21.0 million and loss from continuing operations
was ($2.1) million, or ($.40) per share compared to total revenues of $20.0
million and loss from continuing operations of ($2.1) million, or ($.41)
per share in the fourth quarter of last year. The quarter was adversely
affected by higher interest expense due to higher average debt levels.
For the fiscal year ended June 30, 2007, total revenues were $130.3
million and loss from continuing operations was ($2.6) million, or ($.50)
per share compared to total revenues of $71.5 million and earnings from
continuing operations of $0.5 million, or $0.09 per share for the twelve
months ended June 30, 2006. The current fiscal year was adversely affected
by higher corporate and administrative expenses, higher amortization
expense, a loss on the disposal of equipment used in printing services, and
higher interest expense. The twelve months ended June 30, 2007 represent
the Company's first full year of operation as a stand-alone public entity.
The prior twelve months includes the Company's first fiscal year, the six
months ended June 30, 2006, and represented its first year end period since
becoming a separate, stand- alone public entity. As such, the prior twelve
months includes twelve months of activity for the Company's Newspaper
Publishing business and only six months and one day of activity for the
Company's Collegiate Marketing and Association Management businesses as
well as only six months of Corporate and related expenses.
"On a twelve month pro-forma(1) basis, the revenues from our Newspaper
Publishing, Collegiate Marketing, and Association Management Services
businesses increased by 14%, 21%, and 15%, respectively, compared to the
same period last year," said Thomas J. Stultz, President and CEO of Triple
Crown Media. "Earnings before interest, taxes, depreciation, and
amortization ("EBITDA") increased by $3.0 million for our Newspaper
Publishing business. Pro-forma EBITDA for our Collegiate Marketing business
increased by $1.5 million excluding a loss from the disposal of equipment
used in our printing services to print certain sports marketing related
publications sold on March 22, 2007, as we have determined that we can
outsource these publications at a lower cost. Pro-forma EBITDA for our
Association Management Services business increased by $1.0 million. On June
22, 2007, we disposed of our Wireless business to focus on our core
businesses."
Until December 30, 2005, the Company's Newspaper Publishing and
Wireless businesses were owned and operated by Gray Television, Inc.,
operating as wholly-owned subsidiaries or divisions of Gray. Immediately
following the distribution of our common stock to Gray's common
stockholders on December 30, 2005 in a transaction referred to as the
Spin-off, the Company acquired its Collegiate Marketing and Production
Services business and Association Management Services business pursuant to
a merger with Bull Run Corporation.
Triple Crown Media owns and operates six daily newspapers and one
weekly newspaper in Georgia. Triple Crown Media, through its subsidiary,
Host Communications, Inc., is engaged in the Collegiate Marketing business
and Association Management Services business. The Collegiate Marketing
business provides sports marketing and production services to a number of
collegiate conferences and universities and, through a contract with CBS
Sports, on behalf of the National Collegiate Athletic Association. The
Association Management Services business provides various associations with
services such as member communication, recruitment and retention,
conference planning, Internet web site management, marketing and
administration.
Non-GAAP Financial Measure
In addition to presenting financial results in accordance with
generally accepted accounting principles, or GAAP, this earnings release
also presents earnings before interest, taxes, depreciation and
amortization ("EBITDA"). EBITDA is calculated by deducting operating
expenses from operating income and excluding amounts related to interest
expense, income tax expense or benefit, depreciation expense, amortization
expense and any gain or loss on disposal of assets. The Company believes
this non-GAAP financial measure provides investors with additional insight
into the Company's ongoing operating performance. This non-GAAP financial
measure should be considered in conjunction with, but not as a substitute
for, the financial information presented in accordance with GAAP.
Conference Call Information:
Triple Crown Media, Inc. will host a conference call to discuss its
third quarter operating results on Tuesday, October 2, 2007 at 2:00 PM
eastern time. The live dial-in phone number is 1-800-322-2803 (participant
passcode 49162228). The call will be webcast live and will be available for
replay at http://www.triplecrownmedia.com. The taped replay of the conference call
will be available at 1-888-286-8010 (participant passcode 47118219) until
December 2, 2007.
(1) Pro-Forma refers to the results of operations for the twelve months
ended June 30, 2006, which includes the results of operations for our
Collegiate Marketing and Association Management businesses for the period
during which they were owned by Bull Run Corporation prior to the Merger on
December 30, 2005.
TRIPLE CROWN MEDIA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
Twelve Months Twelve Months
Ended June 30, Ended June 30,
2006(1) 2007
(Unaudited)
Operating revenues:
Publishing $42,506 $48,464
Collegiate marketing 24,271 70,896
Association management services 4,717 10,941
71,494 130,301
Expenses:
Operating expenses before
depreciation, amortization
and loss on disposal of assets, net:
Publishing 31,154 34,104
Collegiate marketing a 22,472 65,347
Association management services 3,484 7,762
Corporate and administrative 3,327 5,711
Depreciation 1,523 1,858
Amortization and impairment of
intangible assets 1,416 3,920
Loss on disposal of assets, net (40) 930
63,336 119,632
Operating income 8,158 10,669
Other income (expense):
Interest expense related to Series
B preferred stock (227) (453)
Interest expense, other (6,152) (13,247)
Debt issue cost amortization (612) (1,276)
Miscellaneous income, net - 100
Income (loss) from continuing
operations before income taxes 1,167 (4,207)
Income tax expense (benefit) 706 (1,572)
Earnings (loss) from continuing
operations 461 (2,635)
Income (loss) from discontinued
operations, net of tax (864) (460)
Gain (loss) on disposal of
discontinued operations, net of tax 5,685 (381)
Net income (loss) 5,282 (3,476)
Series A preferred stock dividends
accrued (545) (1,086)
Net income (loss) available to common
stockholders $4,737 $(4,562)
Basic and diluted per share
information:
Earnings (loss) from continuing
operations $0.09 $(0.50)
Income (loss) from discontinued
operations $(0.17) $(0.09)
Gain (loss) on disposal of
discontinued operations, net of
tax $1.14 $(0.07)
Net income (loss) $1.06 $(0.66)
Net income (loss) available to
common stockholders $0.95 $(0.87)
Weighted average shares outstanding 5,004 5,246
Twelve Months Twelve Months
Ended June 30, Ended June 30,
2006(1) 2007
(Unaudited) (Unaudited)
EBITDA by business segment:
Operating revenues:
Publishing $42,506 $48,464
Collegiate marketing 24,271 70,896
Association management services 4,717 10,941
Operating Revenue 71,494 130,301
Operating expenses before
depreciation, amortization
and loss (gain) on disposal of
assets, net:
Publishing 31,154 34,104
Collegiate marketing 22,472 65,347
Association management services 3,484 7,762
Operating expenses before
depreciation, amortization
and loss (gain) on disposal of
assets, net 57,110 107,213
EBITDA by business segment:
Publishing 11,352 14,360
Collegiate marketing 1,799 5,549
Association management services 1,233 3,179
Total EBITDA of business
segments $14,384 $23,088
(1) The twelve months ended June 30, 2006 includes twelve months of
activity for the Company's Newspaper Publishing business and only six months
and one day of activity for the Company's Collegiate Marketing and Association
Management businesses as well as only six months of Corporate and related
expenses.
TRIPLE CROWN MEDIA, INC.
PRO-FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
Pro-Forma
Adjust-
ments Pro-
To Forma
Twelve Twelve Twelve Twelve
Months Months Months Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2006(1) 2006(2) 2006(3) 2007
(Un- (Un- (Un-
audited) audited) audited
Operating revenues:
Publishing $42,506 $- $42,506 $48,464
Collegiate marketing 24,271 34,235 58,506 70,896
Association management services 4,717 4,768 9,485 10,941
71,494 39,003 110,497 130,301
Expenses:
Operating expenses before
depreciation, amortization
and loss on disposal of assets, net:
Publishing 31,154 - 31,154 34,104
Collegiate marketing 22,472 31,924 54,396 65,347
Association management services 3,484 3,816 7,300 7,762
Corporate and administrative 3,327 234 3,561 5,711
Depreciation 1,523 207 1,730 1,858
Amortization and impairment of
intangible assets 1,416 - 1,416 3,920
Loss on disposal of assets, net (40) 47 7 930
63,336 36,228 99,564 119,632
Operating income 8,158 2,775 10,933 10,669
Other income (expense):
Interest expense related to Series B
preferred stock (227) - (227) (453)
Interest expense, other (6,152) (520) (6,672) (13,247)
Debt issue cost amortization (612) - (612) (1,276)
Miscellaneous income, net - - - 100
Income (loss) from continuing
operations before income taxes 1,167 2,255 3,422 (4,207)
Income tax expense (benefit) 706 729 1,435 (1,572)
Earnings (loss) from continuing
operations 461 1,526 1,987 (2,635)
Income (loss) from discontinued
operations, net of tax (864) - (864) (460)
Gain (loss) on disposal of
discontinued operations, net of tax 5,685 - 5,685 (381)
Net income (loss) 5,282 1,526 6,808 (3,476)
Series A preferred stock dividends
accrued (545) - (545) (1,086)
Net income (loss) available to common
stockholders $4,737 $1,526 $6,263 $(4,562)
Pro-Forma
Adjust-
ments Pro-
To Forma
Twelve Twelve Twelve Twelve
Months Months Months Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2006(1) 2006(2) 2006(3) 2007
(Un- (Un- (Un-
audited) audited) audited
EBITDA by business segment:
Operating revenues:
Publishing $42,506 $- $42,506 $48,464
Collegiate marketing 24,271 34,235 58,506 70,896
Association management services 4,717 4,768 9,485 10,941
Operating Revenue 71,494 39,003 110,497 130,301
Operating expenses before
depreciation, amortization and loss
(gain) on disposal of assets, net:
Publishing 31,154 - 31,154 34,104
Collegiate marketing a 22,472 31,924 54,396 65,347
Association management services 3,484 3,816 7,300 7,762
Operating expenses before
depreciation, amortization
and loss (gain) on disposal of
assets, net 57,110 35,740 92,850 107,213
EBITDA by business segment:
Publishing 11,352 - 11,352 14,360
Collegiate marketing and production
services 1,799 2,311 4,110 5,549
Association management services 1,233 952 2,185 3,179
Total EBITDA of business segments $14,384 $3,263 $17,647 $23,088
(2) The pro-forma adjustments to the financial statements include the
results of operations of the Company's Collegiate Marketing and Association
Management Services business segments for the period beginning July 1, 2005
through December 30, 2005 during which they were owned by Bull Run
Corporation prior to the Merger.
(3) The Pro-Forma results of operations for the twelve months ended
June 30, 2006, include the results of operations for our Collegiate
Marketing and Association Management businesses for the period during which
they were owned by Bull Run Corporation prior to the Merger on December 30,
2005.
Cautionary Statements for Purposes of the "Safe Harbor" Provisions of
the Private Securities Litigation Reform Act:
Except for the historical information contained herein, information set
forth in this news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Words such
as "expects," "anticipates," "intends," "plans," "believes," "estimates,"
and variations of such words and similar expressions that indicate future
events and trends are intended to identify such forward-looking statements.
These forward-looking statements are subject to risks and uncertainties,
which could cause the company's actual results or performance to differ
materially from those expressed or implied in such statements. The Company
makes no commitment to update any forward-looking statement or to disclose
any facts, events, or circumstances after the date hereof that may affect
the accuracy of any forward-looking statement. For additional information
about the Company and its various risk factors, please see the Company's
most recent Annual Report on Form 10-K and other documents as filed with
the Securities and Exchange Commission.
SOURCE Triple Crown Media, Inc.
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Related links:
http://www.triplecrownmedia.com
CONTACT:
Thomas J. Stultz, President & Chief Executive
Officer, +1-859-226-4356, or Mark G. Meikle, Executive Vice
President & Chief Financial Officer, +1-859-226-4376, both of
Triple Crown Media, Inc.
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